Polypropylene, commonly known as PP, is one of the most widely used plastics in the world. It is found in packaging materials, automotive parts, household containers, medical products, and many everyday items. Because it is affordable, lightweight, and versatile, industries rely heavily on it. For this reason, changes in polypropylene (PP) prices have a direct impact on manufacturers, traders, and consumers worldwide.

In the third quarter (Q3) of 2025, the global polypropylene (PP) price trend showed a broad decline across most major regions. The overall market tone was soft and bearish. Slower demand, economic uncertainty, and oversupply were the key factors pushing prices lower. While some regions experienced small differences in performance, the general direction of polypropylene (PP) prices remained downward throughout the quarter.

Let’s take a closer look at how the market behaved globally and region by region.

Overall Global Market Situation

During Q3 2025, global demand for polypropylene weakened. Key industries such as automotive and packaging reduced their procurement volumes. When these sectors slow down, PP demand usually drops quickly because they are among the largest consumers of the material.

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At the same time, supply levels remained steady in many regions. In some cases, imports increased, creating additional competition in domestic markets. When supply is high but demand is weak, prices naturally fall. This basic supply-demand imbalance was one of the biggest reasons for the decline in polypropylene (PP) prices during the quarter.

Economic uncertainty also played an important role. Many buyers adopted a cautious approach. Instead of purchasing large volumes, companies focused on small and necessary orders. Restocking activity was limited, and this cautious behavior added pressure to the overall polypropylene (PP) price trend.

United States: Steady Decline Under Demand Pressure

In the United States, polypropylene export prices FOB Houston for Impact Copolymer Injection Moulding Grade declined by 4.7% during Q3 2025. Prices ranged between USD 1,050 and USD 1,100 per metric ton.

The main reason behind this decline was reduced demand from automotive and packaging industries. These sectors scaled back production, which lowered consumption of PP. Additionally, economic uncertainty caused buyers to delay purchases.

Imports also entered the US market at competitive prices, increasing supply pressure. In September 2025 alone, polypropylene (PP) prices in the US dropped by another 3.6%. One major reason for this additional decline was the fall in feedstock propylene prices, which dropped by more than 5%, reducing cost support for producers.

Overall, the US market reflected weak demand, cautious buying, and a generally bearish sentiment.

Mexico and Canada: Oversupply and Import Competition

Mexico experienced a 4.4% decline in polypropylene (PP) prices during Q3 2025. Lower demand from automotive and packaging industries played a major role. Strong supply from the US also added pressure, as buyers delayed procurement expecting better deals.

In September, prices in Mexico dropped further by 3.5%, mainly due to weak domestic consumption and competitive US imports. Restocking remained minimal, and market activity was slow.

Similarly, Canada saw a 3.7% decline in Q3. Polypropylene prices in Montreal were pressured by imports from the US and other overseas suppliers. Buyers remained cautious and avoided large purchases. In September, prices declined again by 3.2%.

Both Mexico and Canada showed how strong import competition and weak downstream demand can push polypropylene (PP) prices downward.

Europe: Continued Softness Across Major Markets

In Europe, the polypropylene (PP) price trend was clearly negative throughout Q3 2025. Germany saw a 5.0% decline, Belgium dropped by 5.1%, and France fell by 4.9%.

Demand from automotive and packaging sectors remained weak. At the same time, imports from the US and Asia increased competition. Buyers hesitated to commit to large orders due to economic uncertainty.

In September, Germany and Belgium both experienced further declines of around 2.0%, while France dropped by 1.9%. Seasonal restocking, which sometimes supports prices in late summer, did not happen this year. Oversupply and weak demand continued to dominate.

The European market reflected a clear bearish environment with cautious buyers and limited recovery signs.

Saudi Arabia: Early Strength, Later Softness

Saudi Arabia showed a slightly different pattern compared to other regions. During early Q3 2025, polypropylene (PP) prices increased by 4.2%. Strong regional and export demand from Middle Eastern and African markets supported prices.

Limited local competition also allowed producers to maintain higher price levels. However, this upward trend did not last the entire quarter.

In September 2025, prices declined by 2.5% as global demand weakened and procurement activity slowed. Increased import competition and cautious domestic buying partially reversed earlier gains.

As a result, Saudi Arabia’s polypropylene (PP) price trend showed mixed behavior strong early in the quarter but softer toward the end.

India and Brazil: Persistent Weakness

In India, polypropylene prices Ex-Ahmedabad declined by 1.2% during Q3 2025. Weak demand from automotive and consumer goods sectors limited buying interest. Stable domestic supply and competitive imports prevented any price recovery.

In September alone, Indian polypropylene (PP) prices dropped sharply by 4.1%. Poor domestic demand and cheaper US-origin imports contributed to this additional decline. Restocking activity remained very low.

Brazil experienced a similar situation. Prices CIF Santos declined by 3.9% in Q3 2025 due to weak demand from packaging and automotive sectors. US imports created additional competition.

In September, prices in Brazil fell by another 3.7%. Buyers continued purchasing small volumes, and overall market confidence remained low.

Both India and Brazil showed consistent softness throughout the quarter.

China: Soft Demand and Competitive Imports

China’s polypropylene (PP) prices Ex-Fujian declined by 1.1% during Q3 2025. Demand from construction and packaging sectors weakened, reducing overall consumption.

Although production levels remained stable, imported material increased competition. In September 2025, prices dropped by another 1.6%. Even temporary plant shutdowns did not provide enough support to reverse the downward trend.

Weak downstream demand and cautious procurement behavior continued to shape the market environment.

Key Factors Behind the Decline

The global polypropylene (PP) price trend in Q3 2025 was influenced by several common factors:

• Weak demand from automotive and packaging sectors

• Economic uncertainty leading to cautious buying

• Oversupply in several regions

• Increased import competition

• Limited restocking activity

• Falling feedstock costs in some markets

When these factors combine, they create sustained downward pressure on prices.

Conclusion

In simple terms, Q3 2025 was a challenging quarter for the global polypropylene market. Most regions experienced price declines due to weaker demand and cautious buyer behavior. The US, Mexico, Canada, Europe, India, Brazil, and China all recorded reductions in polypropylene (PP) prices. Saudi Arabia showed temporary strength but later followed the global downward trend.

The overall market sentiment remained bearish throughout the quarter. Oversupply, economic uncertainty, and limited restocking kept prices under pressure. Unless demand from key industries improves significantly, polypropylene (PP) prices may continue to face challenges in the near term.

Understanding these trends helps businesses plan procurement strategies and manage costs more effectively in changing market conditions.

About Price Watch™ AI

Price-Watch AI is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price-Watch AI specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price-Watch AI platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price-Watch AI transforms market volatility into actionable opportunity.

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